Two overseas banks, one in Sweden and the other in Singapore, say they will not register with U.S. regulators as required by a proposed rule stemming from Dodd-Frank, the Wall Street Journal reports. Foreign banks have been unhappy about the rule, which requires them to register if they trade a certain amount of swaps with U.S. banks.
The two banks are DBS in Singapore and Nordea Bank in Sweden.
The Journal article notes that on Oct. 12, the CFTC said foreign banks didn’t have to register for the time being if they traded only with the overseas branches of U.S. banks, as along as those banks registered as swaps dealers. Banks are making an effort to ensure that that provision is included in the final version of the rules, due out later this year or early next year.
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